tv Bloomberg Technology Bloomberg October 6, 2017 11:00pm-12:00am EDT
♪ alisa: i'm alisa parenti in washington and you are watching "bloomberg technology." the white house declined to elaborate on president trump's cryptic message last night when he called his photo op with military leaders "the calm before the storm." sarah sanders says trump is not looking to project details of military strategies. jeff sessions issued a memo to federal agencies advising them to follow 20 principles based on the d.o.j.'s interpretation of existing laws. among them that religious employers can discriminate in hiring. the trump administration plans to roll back the centerpiece of
president obama's efforts to slow global warming. the e.p.a. says the rule exceeded federal law by setting emission standards power plants could not reasonably meet. a u.s. soldier who went missing in niger has been found dead after an ambush by extremists during a joint patrol with local troops. the soldier was one of four u.s. troops and four from niger killed in the attack. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ ♪
cory: i am cory johnson in for emily chang. this is "bloomberg technology." u.s. payrolls fall but wages soar. the future of employment with the head of talent at linkedin. high hopes tesla's solar power could help the island recover from the storm. new reports about swelling in the iphone 8 battery. we dig into how big the problem could be for apple. the u.s. september jobs report showed payrolls declined for the first time since 2010, but it is all about hurricanes that hit the u.s. without that the labor market maybe did not look so bad. maybe because people with low wages could not go to work or overtime. labor participation rate rising to the high since 2014. the director of the national economic council spoke to bloomberg from the white house.
he said the u.s. can increase this figure by luring more businesses to the country. >> when you lower the tax rate, we make ourselves more competitive. we make it that businesses want to locate in the united states. when they locate in the united states, they have to hire labor. they compete for labor. they hire people. cory: in technology, there is another set of issues when it comes to jobs. the hunt for talent and the widening skills gap. let's bring in the founder of digital school university. before that, he was at linkedin. the jobs report was interesting. there you are. the jobs report, very interesting. you could see some long-term trends in the economy reflected in this report. >> you can.
what will be interesting is to see what happens in the months ahead where the real retailers will go at it preparing for holiday sales. those of us watching jobs are curious how the nontraditional, nondigital businesses like the gaps will compete with amazon during the holiday season. what kind of skills will they be adding and how that will change the landscape in the months ahead. cory: i agree. i think the number one negative trend that jumps out in the report is the long-term movement away from retailing. there is movement because of the hurricane. people were not able to shop in certain places. but that is a trend we have been seeing for some time. >> it has been. what is interesting to me is what is not in the jobs report. huge growth in the gig economy. over the last 10 years, we have
had over 3 million jobs added of independent contractors. these are people not included in the jobs report. all the viewers today are being touched by the gig economy taking uber or staying at airbnb. these numbers and this income are not being reported. it will be fascinating to see how the jobs report evolves to account for the growing gig economy. cory: there is a line in the labor report. the only category of jobs that has seen decreases is information technology. that is people who do what i do, create media, report the news.
i thought it was interesting at the time we are having the debate about the role of fake news and facebook as a place people are getting information that we see the jobs for people creating media facing decline. >> i would not say there is a decline in new media created. that is an interesting part of that. everyone can publish media now through their mobile devices, which is an interesting trend. there may not be jobs on the payroll for media creation but we cannot say there is a decline in media creation overall. cory: that is my point. the impression of earnings and the value of jobs is a concern not just when people are going from disappearing manufacturing jobs to now disappearing retailing jobs. but we also have technology jobs that are not high income jobs when there is not a lot of money to be made when there is a lot of content to be created. >> the thing not reflected in the jobs report i am seeing talking to employers, our university deals with lots of organizations struggling to find skills in things like e-commerce and data analytics.
this information category is exploding in lots of different areas. that is why my colleagues and i found this university, to try to address the shortage of talent in this new way of doing business, this new digital economy. cory: tell me more about the business. >> we opened the school in september. we have a live class of 25 students now who are excited about what we are building. we are also launching an online university this october. what we are finding talking to employers is they are super excited to have a school providing students with everything from digital strategy all the way through to digital design, user experience, content, understanding social networks. when we talk to companies, let's go back to the retail industry. when you talk to people who want to compete against the amazons, they have 50,000 open jobs and are looking for new headquarters. when you talk to their competitive retailers, they want people that can help them have
the skills to compete with amazon. those skills are in short supply. that is what we are going after at isdi. cory: it is interesting you are starting from the notion of what employers want as opposed to what students think they will want or workers think they will want to get to the next level. >> yeah. this is the hard part. i get asked a lot the most important digital skills i need today. our answer to that for our students is, don't you want to be equipped for the skills you will need tomorrow? we know what is needed today, but we know they will be different five years from now. the concept of agility, a growth mindset, is super important. that is the approach we take and how we teach our students and think about the learning process. cory: finally, talk to me about what the students look like. >> our average age of students is 40 years old. we have everyone from people in digital marketing to people who have their own businesses to
writers looking to found their own business. what they all share is a common desire to be relevant and compete in this new digital landscape which is increasingly on the internet. how do i get eyeballs so i can reach new customers and succeed in ways i could not through traditional businesses? cory: and they do not have to go to optometry school. great stuff. thank you, steve cadigan. cool stuff. shares of t-mobile climbing in friday's session. shares of sprint lower. the parties are said to be finalizing the terms of their merger which could be announced by the end of the month. a tie up between sprint and t-mobile would cut the number of wireless carriers from four to three. coming up, bitcoin making a big inroads into the big banks. banks looking at cryptocurrency. we will bring you the details next. "bloomberg technology" is live
cory: amazon could be selling prescription drugs by 2019. amazon sold drugstore.com to walgreens. the site closed last year. amazon was an initial investor but walked away from the business. the company refused to respond to request for comment. jamie dimon has called bitcoin a fraud. kyle bass weighed in earlier on bloomberg. >> i think there is a digital
gold rush that has gone on. i think a lot of people will lose a lot of money. a bunch of ico's will go broke. a bunch are frauds. that will be problematic for people that rushed in. i feel it is a bit of a mania at the moment. i think in the long term, it is a viable asset class. cory: people familiar with the matter tells us wall street is moving to embrace digital currencies. they are looking at other ways to get involved in blockchain. joining us now is lily katz. the conversation about digital currencies starts and stops with bitcoin. a lot of people starting to think about blockchain. what is it about bitcoin a makes it impossible for wall street to
use it as currency? >> there are a lot of things wall street executives have to worry about when they are considering about whether to start adopting this. there is fraud. these banks have regulations. they have anti-money laundering regulations. big banks are seen as a place where people can safely put their money. they have a reputation for that. do they want to risk that reputation by adopting an asset that is seen as a risky, volatile asset? cory: the volatility of the asset makes it hard for the banks to maintain a reputation. >> yes. cory: it is also the know your customer rules. a lot of people in the digital currency space do not understand how sacrosanct it is in the market. the know your customer rule is about money laundering and more.
>> that is why we have seen so many executives come out in the last month. jamie dimon said bitcoin is a fraud, i will fire any trader trades bitcoin. we saw larry fink, the c.e.o. of blackrock, talk about how much bitcoin is used in crimes. we had the chairman of u.b.s. say he is skeptical. we did have a couple of executives talk about -- give more balanced views. the morgan stanley c.e.o. said this might have some future, i am not totally convinced it is nothing. goldman's c.e.o. also said i have not made a decision on it yet. he brought up an interesting point which was people once viewed paper money as this weird thing, so who is to say bitcoin is not the same. cory: lloyd blankfein comes from the trading part of the business and understands the trading nature of it more than jamie dimon. there is also the aspect of jamie dimon's business on some
level is about having lots of fingers in the pie when money is moved from one account, you write a check and it takes three days, and charges happen. that is j.p. morgan's business. if you trade a stop on the j.p. morgan platform it moves from one hand to the next. recording those transactions is part of their business. if blockchain can take that away, j.p. morgan loses all that business. >> when you think about why bitcoin was created in the first place, it was created to displace the centralized big banks. why use a big bank? that was the whole point of bitcoin. it is smart of these banks to be thinking about this as a potential risk. cory: so many of the initial coin offerings have created
specialty currencies. bitcoin is not only getting headlines, it is getting trades. i want to show you on the bloomberg terminal the euphoria around bitcoin. type in 8492. you get the same chart in your bloomberg terminal. you see the only time that coin has been oversold on a technical basis is going on with back to mid-2015. there has been a bullish trade. people loving bitcoin. bitcoin's pricing was $240 two years ago and now trading at extreme heights now over $4000. the excitement is more about bitcoin. ethereum starting to get some attention but not as much as bitcoin. >> more than $2 billion have gone into the initial coin offerings which is pretty wild. people are not ignoring this stuff. cory: do you get a sense there is excitement about blockchains focusing on bitcoin and something else?
ico's seem like some of the dumbest investments because it is him is on us like a specialty acquisition corporation where you buy stock in something before the business exists. >> a lot of people make the distinction between ico's raising money for a coin versus may be shady cryptocurrency companies started by someone in a basement trying to raise money for themselves. cory: there will be some overlaps. >> there may be some overlaps. cory: lily katz, thanks so much. coming up, puerto rico takes to twitter and asks tesla for help. could elon musk help the island? we will talk about that next. this is bloomberg. ♪
cory: lots of companies are sending lots of supplies to puerto rico, including tesla. not cars. solar panels and batteries. the hurricane knocked out power to 90% of businesses and homes. the governor reached out to tesla's c.e.o. elon musk using twitter. he suggested elon musk help rebuild the entire island grid. they spoke today. hours later, elon musk took to social media saying tesla will divert resources to puerto rico and other affected areas. joining me now, max chafkin. we talked about this on bloomberg radio and then elon musk comes out with the tweet. tesla's limited profitability does not mean they are getting a big tax break. this is a generous effort.
they say they may be delaying a musk comes out with the tweet. product not even on the market. >> you have to look at the semi truck as a side project. for tesla to justify this incredible valuation it has, it needs to get model 3 sedans off the production lines. reading between the lines, i would say tesla can only handle one side project at a time. elon musk has decided -- cory: side project? >> puerto rico versus -- elon musk can handle many side projects, as we have learned. he is running two companies. a couple of days ago, he introduced a new rocket. cory: let's talk specifically about solar power.
the way tesla's solar power business works, solarcity, is to provide power to homeowners, power that goes back into the grid. it is not to run power into someone's house in a self-sustained effort. >> this is one of the big reasons according to elon musk they merged the companies. solarcity made and installed solar panels. you need a connection to the grid to make that work. with these batteries, the idea is a homeowner could get off grid if they wanted. a few months back, elon musk took to twitter to say he does not think the grid is the long-term weight most people get power. many homes will move off the grid and run off of their rooftop panels.
that is the kind of vision. it is important to keep in mind it is a long way out. cory: he is offering a product now to puerto rico. another way solarcity works is they have installers who can install solar power. are there installers available for puerto rico? >> on twitter, puerto ricans were complaining companies were charging something like $12,000 to install these power walls where it should cost something like $5,000 or $6,000 according to tesla. elon musk took to twitter and said that is a supply issue, they are sending engineers to puerto rico.
it gets to the important point. solar installation is like a construction business. it is not necessarily a high-profitability industry. that is kind of the trick to solarcity, now tesla energy, being able to do this at scale and lots of them at once. people questioned this. that was another part of the rational with tesla. they can now package cars and solar panels and batteries all at once so you're not having to deal with lots of salespeople or other things increasing the cost for solarcity. cory: for the people who get bored when they hear about the municipal debt, puerto rico, the financial system in puerto rico presently prevents the island
from rebuilding a modern infrastructure because they do not have the money to do it. they do not have the facility anywhere else in the united states might have. until that gets resolved, we will not see a solar puerto rico. we will not see a cutting edge power grid like we might see in texas or florida. >> it is what makes this kind of proposal, is supposedly the governor puerto rico and elon musk talked today, it makes it intriguing because over 90% of their power lines are down now. they don't really have a grid at the moment. cory: they could build a new one. >> it is enticing to think of puerto rico is a microcosm of the place without transmission lines where people are using solar panels on their homes. elon pointed out there are a few islands that have done this. puerto rico is much bigger and more developed than american samoa. 3.5 million people who want to
run air-conditioning and tv's all the time. cory: the coolest thing about elon musk is he makes you think about things that have not been possible before. wouldn't that be a great thing if we could have a new, modern infrastructure for puerto rico? we will see. max chafkin, great stuff as always. we appreciate your time. facebook, twitter, and google in the spotlight as lawmakers continue to probe russia's influence on the election. what changes could be coming for tech giants? we will talk about that. you can listen to bloomberg on the radio. this is bloomberg. ♪
mark: you are watching "bloomberg technology." president trump health-related events of the waymo how to market hispanic heritage month after coming under fire from let's know leaders who say his response of relief to puerto rico was poor. press secretary sarah sanders said gasquet the white house explanation for president trump's cryptic message when he called his meeting the calm before the storm. >> he doesn't want to lay out his game plan for our enemies. if you are asking is the president trying to do that, absolutely. mark: in regards to north korea, sanders reiterated all options remain on the table.
north korea plans to create a missile that can hit the u.s. this of the north wants to show it is ready for confrontation. the missile could theoretically hit the u.s. west coast. the international campaign to abolish nuclear weapons is the winner of this year's nobel peace prize. beatrice told reporters in geneva that the election of donald trump as u.s. president sends a message. >> there are no right hand for the wrong weapons. if you aren't comfortable with the idea of donald trump having nuclear weapons that he is able
to launch, you are really uncomfortable and nuclear weapons in general. i think that really is the message we want to come across. mark: the u.s. secretary general tweeted his congratulations. a law enforcement officials says las vegas shooter stephen paddock bought rounds of missiles month ago. have not disclosed if he used these rounds during the attack. the united nations lowered its fly in haiti. there are now about 100 international soldiers still in the country and they will leave within days. the mission's official end date is october 15. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries.
i'm mark crumpton, this is bloomberg. ♪ cory: the house intelligence committee is asking officials from facebook, twitter, and google to testify publicly as part of the russian probe. according to two people familiar, bloomberg sat down to talk about that and other top tech stories of the week. he starts by asking if tech companies can expect more regulation. >> it is a very real possibility. our colleague sarah frier reported this week how facebook lobby to four years with the fec
in washington dc to keep from having to have their political ad spending regulated the way it is on tv, radio, and prints. their argument is the space is too small and there are not enough characters for you to add all of those disclaimers that he would have on radio and tv. now, there is a real possibility that legislators could come in and force regulators to impose limits on this and that could slow up the trickle of money. >> it is remarkable to me that facebook and twitter seems like punching bags all week and facebook this week, the stock was actually up hearing why does wall street care about this and
should they? >> i think the stock market has been bullish and not really responsive to the russian concerns. i also think from facebook's perspective, there will always be the fact that it is reflective that the situation was far worse with the government handling election hacking. i think they will always be the second player there and there will be a lot of political cover for them if the situation gets worse. that would reassure people that facebook would take -- here. >> there is a new problem called solar flex. amazon will be picking products up in the warehouses of the suppliers and distributing them directly to suppliers. how concerned should ups and fedex be? >> not too concerned. longer-term, amazon likes to
experiment and iterate and they love spending money on warehouses and their network. the fact is if they start to see success on a limited basis, there is nothing stopping them from expanding their network. in the near term, those networks cost billions of dollars. fedex and ups are very well-established, in place, they have everything in place read i do not think that is something that affects them in the near future. >> i agree with that. amazon is a growing market and looking for ways to fulfill the demand. this will be one piece of the supply chain. let us talk about uber. there is no we can silicon
valley without more uber drama. the board unanimously voted to move ahead with the softbank investment. >> tells the whole goal of this yields. governments plus softbank and the idea was how can we do the pieces together. everybody is getting something. there was a lot of negotiation down to the wire. literally day of, night of, people were fighting about what exactly would go into this. when of the central points of the debate was how much to crack down on travis's role in the company going forward. the messages targeting him were very clearly about him. there was the languishing should make it restrictive of procedural the less mean-spirited and that brought everyone together even though there were still think people do
not like about it. there was enough agreement to get the foregoing. >> what does that extra $1.25 billion mean going forward? >> the import of the deal is the secondary, still in the race of $9 billion. softbank and its investors have 14.7% of outstanding shares. the number is a moving target. this is good for the company but it is much smaller than the much larger secondary investment that is going to happen here. cory: that was brad stone and eric newcomer. there could be an ipo for hellofresh to distance itself from blue apron's face planted ipo. hellofresh -- $531 million dollars. switch builds and operates data centers and even though it is a tech startup, the company has been profitable for the past four years. get rid of bias. we will explore a resume-free world next. this week, we are ready you the best interviews, including all the highlights in the vanity
u.s. tech grew substantially in the last two years. but jobs are hard to come by and competition is intense. we are trying to deal with that. the sector gets filled with all types of diverse candidates and this can happen by getting rid of resumes. joining us from san francisco, thank you. tell me about how your approach is very different than we have seen at a typical job site? >> thank you for having me. but we do is very different than the typical hiring process because we are trying to entirely get rid of resumes. the idea is a resume doesn't have information on whether someone can do the job. this is true for the software engineering world. people are going outside of the traditional four-year degree and system to learn to code every year. the way companies filter people is not fitting with that. cory: explain it to me. the notion that you look at a resume -- even with the resume, you do not see the person in front of you or have notes on whether they are black, white, green. you cannot see they're male or
female or where they are from. it seems useful. aline: not entirely but i've done a few studies. i can to you about one or two of them. before i started interviewing, i used to run hiring at a company where we interviewed hundreds of engineering candidates and look at everybody who we interviewed in crawford and looked at the resumes and tried to see if there were any signals that could tell us something about the we should look for. will be found surprising is what
ended up mattering more than anything -- more than where people went to school, where they worked, gpa -- was how many typos that person had. those the strongest thing. cory: i couldn't agree more. it is amazing. i cannot believe how many typos i see. aline: there are a lot. that's an industry where you think it is funny because studying computer science at a top school might make a difference. that is something that got me stretching my head. i did another thing where i looked up a bunch of resumes and anonymized them. i took off all identifying biographical details. where they're from, their names. i showed their resumes to a bunch of recruiters and engineers and hiring managers and set to answer one question. would you want to interview this person? the crazy thing was not only can these people not tell who was
good but they disagree with each other. no one can come to a consensus for what a good candidate was like. cory: when you do a video interview, what kind of questions you asked to give people a way to present themselves so they can show with they are without being uninformative? aline: we do not do videos. the reason for that, and i know this sounds crazy, but bear with me, the reason for that is everything that happens on interviewing is completely anonymous. we're not into the idea that what the candidate should do matters way more than what they can do on paper. every inch of the platform is the kind of technical interview you might see at a company like google or facebook. a lot of the interviewers on her platforms and engineers who work at the companies -- what happens on a platform is somebody shows up and gets matched with an interviewer and they jump right in and start solving problems together. the interviewer will be asking the person to solve the problem by writing code and they will be watching and offering hints as needed. they have no context about the person they're talking to accept if it is a practice interview,
no context at all. if it is an interview with one of our customers they know that person has done well in previous interviews and that is all that matters. everything is off the table except whether this person cancel problems with code. cory: they also have to be able to talk and share ideas and communicate. it might be they can spell. [laughter] those kinds of things, those kinds of interpersonal skills, how to get around that hurdle? aline: after each interview there is a rubric everyone fills out. we ask about the person's technical ability, problem solving ability, and communication ability to all of these items get bundled up into a weighted average. communication ability is a critical part of that and a lot of the companies that we work with our startups where having the ability to figure out what is important, having the ability to work in a team, being able to
communicate effectively and not just be silent but be a meaningful contributing, these are things that matter and are captured. in the process. interviewers are intended to these things as well because there used to hiring and care about these just as much as our customers do. but the semi-person has done a few interviews on our platform, they have a pretty good idea of what they can do not just in terms of code but there viability as an employee. cory: thank you very much. ceo of interviewing.io. coming up, the iphone 8 arrived in storms and some problems perhaps. we'will explain the issue and apples response. find tv on the bloomberg. watch us live. if you miss an interview go back and watch the rest of it. you can play with the charts we bring you on air. tv . you will see on your screen. this is bloomberg. ♪
battery expanding and cracked cases. for more, let us go to market in los angeles who covers all things apple for bloomberg tech. this brings back so many memories of iphones where there was a lot of uproar with the first iphone. i am thinking back to the iphone 4 or 3 maybe that had an antenna that wrapped around the phone. if you touched a key to it for certain way that it wouldn't work. >> that is right. that was with the iphone 4. they had the antenna gate back in 2010. steve jobs, the ceo at the time had to end up having a press conference where they decided to get out the cases are everyone with the iphone 4. there were the pending issues of the iphone 6 plus in 2014 and 2015.
i think a lot of people are anxious about this supposedly battery expansion issue with the iphone 8 because everyone saw what happened with samsung and their exploding batteries. i do not think this is a big deal. i think this is one that will blow over in a few days. it is not like these things are exploding. cory: you think it will blow over? your metaphor. not blow up? mark: i didn't even think of this. i do not think it will blow up. if i am wrong i will sure i will cory: be on air talking about it. no kidding. it highlights this notion of the issue with the batteries is extraordinarily difficult and the materials are
extraordinarily volatile. there have been issues with heat in particular with apple products or apple laptops going back many years. it was a serious issue for apple and maybe hurt sales of one whole round of macbooks. mark: batteries when component apple does not have much control over. they're able to customize the parts that you see there increasingly going in-house for other components, like the processors, screens, cameras, the battery is the commodity component that makes up most of the volume and said the phone and it really is an other people's hands to test the batteries into the chemistry that goes into the creation of the batteries great there has been a lot of talk of his apple will buy tesla.
one thing i have been thinking about is tesla has a lot of battery experience. sorry to get off course but that can bring a lot of in-house experience apple were to do a deal with someone that could bring more battery in-house. cory: another question for me is where these reports coming from. there is so much "garbage" reporting on apple products before and after they come out. are these surface places we believe? this social media give us hints that this might be true? mark: there are very few tweets and posts on the chinese equivalent of facebook and twitter. i have not seen anything that has let this spiral out of control. the thing with antenna gate is anyone who had an iphone 4, that is nearly 2 million people. but the samsung battery exploding, that was a tangible issue too. you solve video and pictures of people holding up an exploding
phone, people with bird situations, lots of local media reports. we haven't seen anything widespread are all over the place with this iphone issue which leads me to believe that it will blow over. in terms of apple's comments, they don't seem too concerned either. they have not found a problem or recognized an issue. maybe down the road they will issue a small replacement program for some of the iphones that they might have found battery issues with. i'm sure they are investigating it. i think if it continues to escalate, we will see more from them. cory: let us hope no one gets hurt and i hope you don't get hurt either. mark: i hope you don't get hurt. cory: that is so sweet. that does it for this edition. next week, we will be broadcasting live in seattle. starbucks kevin johnson and the ceo of amazon web services lobby here.
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